The Law of Ukraine
On the State Tax Service
Date of Entry into Force:
December 4, 1990
The present Law defines the status of the State Tax Service in Ukraine, its functions and legal grounds for its activity.
Key tasks of bodies of the State Tax Service in Ukraine are:
- to exercise control over the adherence to tax legislation, correct computation, full and timely payments of taxes and fees (mandatory payments) to budgets and state special purpose funds;
- to adopt normative and legal acts and methodical recommendations on taxation issues in cases envisaged by the legislation;
- to shape and maintain the State Register of Natural Persons – payers of taxes and other mandatory payments and the Single Data Bank on Taxpayers – Legal Entities;
- to explain the legislation on taxation issues among taxpayers;
- to prevent crimes and other violations, which the law includes into the competence of tax militia, to disclose them, terminate them, investigate them, and conduct legal proceedings in cases on administrative violations.
The system of bodies of the State Tax Service includes: the State Tax Administration of Ukraine, state tax administrations in the Autonomous Republic of Crimea, oblasts, cities of Kyiv and Sevastopol, state tax inspections in regions, cities (except for the cities of Kyiv and Sevastopol), and districts in cities (hereinafter referred to as bodies of the State Tax Service).
Bodies of the State Tax Service shall include special departments for combating tax violations – tax militia.
The Law determines subordination, the procedure for appointing heads, financing and status of bodies of the State Tax Service of Ukraine.
According to the procedure set forth by the law, bodies of the State Tax Service shall have the right to:
1) perform inspections of monetary instruments, accounting books, reports, budgets, declarations, commodity and cash books, readings of electronic cash registers and computer systems used for cash settlements with consumers and other documents regardless of the means for submitting information (including electronic format) at enterprises, institutions and organizations regardless of their type of ownership and of citizens, including citizens – subjects of entrepreneurial activity;
2) obtain free of charge references, copies of documents on financial and economic activity, earned incomes, expenditures of enterprises, institutions and organizations regardless of their type of ownership - from enterprises, institutions, organizations, commercial banks and other financial and credit institutions and citizens – subjects of entrepreneurial activity, and on current and deposit accounts, information about the availability and turnover of funds on these accounts - from citizens;
3) inspect any production, warehouse, trading and other premises of enterprises, institutions and organizations regardless of their type of ownership and residential premises of citizens, if they are used as legal address of a subject of entrepreneurial activity, as well as for earning incomes;
4) seize documents (and leave copies) at enterprises, institutions and organizations that testify to hiding (reducing the value) of taxation objects, evading taxes and other payments;
5) apply financial sanctions to enterprises, organizations, institutions and citizens according to the procedures and in amounts envisaged by the law;
6) impose administrative fines on heads and other officials;
7) apply to courts with an application (claim) on canceling state registration of a subject of entrepreneurial activity in cases envisaged by the law, etc.
The Law determines legal and social status of bodies of the State Tax Service. An official of a body of the State Tax Service can be an individual that received higher education in the relevant area and meets the qualification requirements. In case an official of a body of the State Tax Service perished due to fulfilling their service duties, the family of the perished or their dependants shall be paid a one-time benefit. Officials of bodies of the State Tax Service are subject to mandatory state personal insurance at the expense of the State Budget funds.
A separate chapter of the Law is dedicated to rights and obligations of tax militia as a special department within the bodies of the State Tax Service. Tax militia includes special departments for combating tax violations. These departments act within the relevant bodies of the State Tax Service and exercise control over the adherence to tax legislation, perform operational-investigative, criminal-procedural and protective functions.
Key tasks of tax militia are:
- to prevent crimes and other violations in the area of taxation, to disclose them, to investigate them and to conduct legal proceedings in cases on administrative violations;
- to search for taxpayers, that evade taxes and other mandatory payments;
- to ensure security for activities of workers employed at bodies of the State Tax Services, their protection against illegal infringements related to the fulfillment of their service duties.
Officials of the tax militia shall be granted the rights envisaged by the Law of Ukraine “On Militia” in order to implement their duties.
According to its tasks, tax militia shall exercise the following authorities:
1) accept and register applications, notifications and other information on crimes and violations included into their competence, perform their examination according to the established procedure and pass decisions thereon envisaged by the law;
2) perform operational investigative activity according to the law, pre-trial preparation of materials according to the protocol form, as well as perform interrogation and pre-trial (preliminary) investigation within the scope of their competence, and take measures to compensate losses incurred to the state;
3) ensure security for workers employed at bodies of the State Tax Services and their protection against illegal infringements related to the fulfillment of their service duties, etc.
Human resources departments of tax militia accept citizens of Ukraine on the contract basis. They should have relevant education, be able to perform service duties entrusted to tax militia as relates to their personal, business, moral qualifications and the state of their health.
An official or a public officer of tax militia, who has violated requirements of the law or does not perform their service duties in an appropriate manner, shall bear responsibility according to the established procedure. Actions or decisions of tax militia, its officials and public officers can be appealed in court or prosecution bodies according to the procedure established by the law.